Wild Card Exemption
Under many states’ bankruptcy codes, there is a special exemption for debtors known as a wild card exemption. This exemption allows debtors filing for bankruptcy to protect their property in general against bank auctioning. Each state sets their own limits for the wild card exemption and selects what kind of additional bonuses a wild card exemption may yield.
If you are struggling financially and think bankruptcy may be the right choice but you are worried about what will happen to your property, we can help. Contact the Birmingham bankruptcy lawyers of Greenway Bankruptcy Law, LLC, at (205) 324-4000 today to discuss your bankruptcy options with a skilled and experienced legal advisor.
Wild Card Exemptions in Alabama
Like most states, Alabama permits debtors to set aside a portion of their property under a special bankruptcy exemption. This exemption can be used in almost any way the debtor sees fit. Wild card protection can split across multiple types of property if necessary. Additionally, the wild card exemption may be used in conjunction with other bankruptcy exemptions if a property exceeds that exemption’s limit. In Alabama, these exemptions are set as follows:
$3,000 of property for a single individual
$6,000 of property for a married couple
Total protection works against equity, not actual worth
According to the law, these exemptions take equity into account instead of worth. For example, if someone purchases a $12,000 car with a $9,000 loan, this exemption can be used to cover the difference and to allow an individual to keep the car.
If you are facing financial difficulties that cannot be managed or consolidated, bankruptcy might be right for you. To learn more about your options under the law, contact the Birmingham bankruptcy attorneys of Greenway Bankruptcy Law, LLC, by calling (205) 324-4000 today.